Delhivery shares hit new low. Is more downside possible?

Market


Delhivery shares have been in down trend after showing some upside move post-listing on Indian bourses. The public issue of Delhivery was offered at a price band of 462 to 487 per equity share in May 2022 and Delhivery shares made flat debut in secondary markets but the stock gave sharp upside move post listing and went on hit life-time high of 708 on NSE July 2022. After climbing to record high, Delhivery share price has been nosediving continuously and in early deals on Thursday, Delhivery share price today made a new low of 299.55 apiece on NSE.

Delhivery share price today opened at 307.55, the price where it had closed on Wednesday deals. However, the stock came under the sell off heat immediately after the stock market’s opening bell and went on to hit a new low of 299.55 apiece, its new life-time low, around 40 per cent lower from its upper price band and near 55 per cent lower from its record high of 708 apiece.

According to stock market experts, logistics company is expected to witness low growth on operational front and it may lead to further downside in the scrip. They said that the stock may further go up to 215 in bear case while it is standing at current support of 250 apiece levels.

Speaking on Delhivery share price outlook, Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, “Delhivery share is in a serious downtrend, where it is resuming its southward journey with a breakdown of a descending triangle formation. The pattern suggests more downside toward 250 to 225 levels. For the time being, investors should avoid this stock. We need a close above the 340 level for any trend reversal.”

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Global brokerage firms Macquarie believes that due to low growth conditions and tough liquidity conditions for the e-commerce platforms, Delhivery shaer price may go up to 215 in bear case.

“Over the next few quarters, we see a low-growth operating environment due to tighter funding conditions for e-commerce platforms,” Macquarie said in an investor note. The investor note went on to add that if low-growth operating period becomes the new normal, the Delhivery share price may hit 215 in such bear case.

 

However, the global brokerage firm believes that the stock may benefit from the rising e-commerce penetration in tier-2 and tier-3 cities and gave a target price of 440 in next three years.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.


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